MIRA INFORM REPORT

Report Date :

18.04.2013

IDENTIFICATION DETAILS

Name :	SUNGLASS PALACE PRIVATE LIMITED
Registered Office :	S 395, Lower Ground Floor, Greater Kailash Part - 1, New Delhi - 110048
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.05.2001
Com. Reg. No.:	55-110687
Capital Investment / Paid-up Capital :	Rs. 9.872 Millions
CIN No.: [Company Identification No.]	U51394DL2001PTC110687
Legal Form :	Private Limited Liability Company
Line of Business :	Distributor and Dealer of all kinds of Watches and Sunglasses.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (27)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 65400
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having a moderate track record. The profitability of the company appears to be low. The external borrowing appears to be huge. However, trade relations are reported to be fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	S 395, Lower Ground Floor, Greater Kailash Part - 1, New Delhi – 110048, India
Tel. No.:	91-11-40727711/ 26281063
Fax No.:	91-11-26281066
E-Mail :	asasolution@rediffmail.com

DIRECTORS

AS ON 29.09.2012

Name :	Mrs. Kamla Malhotra
Designation :	Director
Address :	N-94, Greater Kailash, Part-1, Delhi – 110048, India
Date of Birth/Age :	06.03.1942
Date of Appointment :	03.05.2001
DIN No.:	00190516
Name :	Mrs. Kavya Malhotra
Designation :	Director
Address :	N-94, Greater Kailash, Part-1, Delhi – 110048, India
Date of Birth/Age :	23.01.1973
Date of Appointment :	15.03.2005
DIN No.:	00599179
Name :	Mr. Arun Malhotra
Designation :	Director
Address :	N-94, Greater Kailash, Part-1, Delhi – 110048, India
Date of Birth/Age :	19.10.1967
Date of Appointment :	28.06.2006
DIN No.:	01392489

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2012

Names of Shareholders	No. of Shares
Kamla Malhotra	304950
Kavya Malhotra	342250
Arun Malhotra	340000
Total	987200

AS ON 29.09.2012

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributor and Dealer of all kinds of Watches and Sunglasses.

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Punjab National Bank, Greater Kailash, Part-I, Delhi – 110048, India

Ø Barclays Bank

Ø ICICI Bank Limited

Ø Bank of India, Greater Kailash-II, New Delhi – 110048, India

Ø Kotak Mahindra Bank

Ø Yes Bank Limited

Facilities :

Secured Loans	31.03.2012	31.03.2011
Term loans	(Rs. In Millions)
Car Loan from PNB [Car Loan taken at 13% rate of interest, repayable in 60 monthly installments, amounting to Rs. 0.092 Million per installment, ending on November 2016, Secured by hypothecation of Car and personal Guarantees of Directors, Company has defaulted in the repayment of 1]	3.373	0.000
CC Limit from PNB [Secured by hypothecation of stock, Book Debts and personal guarantee of Directors]	25.927	24.209
Total	29.300	24.209

Banking Relations :	--
Auditors :
Name :	Pramod Kumar and Company Chartered Accountants
Address :	49, DDA Site-1, New Rajendra Nagar, New Delhi – 110060, India
Tel. No.:	91-11-28745872
Mobile No.:	91-9958815872
Fax No.:	91-11-47095872
E-Mail :	ajaygoyalca@rediffmail.com
Income-tax PAN of auditor or auditor's firm :	AAAFP5502G
Enterprises in which key management personnel have significant influence :	Ø A.M. Beyond Luxury Watch Boutique Private Limited Ø Mak Luxury Watch Private Limited

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
1,000,000	Equity Shares	Rs. 10/- each	Rs. 10.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
987,200	Equity Shares	Rs. 10/- each	Rs. 9.872 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		9.872	6.872	3.472
2] Share Application Money		0.000	3.000	0.000
3] Reserves & Surplus		6.480	4.755	2.944
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		16.352	14.627	6.416
LOAN FUNDS
1] Secured Loans		29.300	24.209	10.110
2] Unsecured Loans		41.726	38.244	39.256
TOTAL BORROWING		71.026	62.453	49.366
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		87.378	77.080	55.782
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		8.160	2.055	2.521
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.000	5.603
DEFERRED TAX ASSETS		0.284	0.263	0.261
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	32.903	79.400	31.198
	Sundry Debtors	78.558	214.314	32.627
	Cash & Bank Balances	0.642	7.889	2.935
	Other Current Assets	3.216	0.000	0.148
	Loans & Advances	18.378	30.490	24.491
Total Current Assets		133.697	332.093	91.399
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	51.539	253.507	40.376
	Other Current Liabilities	3.072	3.824	3.626
	Provisions	0.152	0.000	0.000
Total Current Liabilities		54.763	257.331	44.002
Net Current Assets		78.934	74.762	47.397
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		87.378	77.080	55.782

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	489.527	257.751	129.896
		Other Income	N.A.	1.579	0.000
		TOTAL	N.A.	259.330	129.896
Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL	N.A.	256.593	124.613
	PROFIT BEFORE TAX		N.A.	2.737	5.283
Less	TAX		N.A.	0.926	0.435
	PROFIT AFTER TAX		1.855	1.811	4.848
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	47.507	N.A.	N.A.
	IMPORTS		76.860	N.A.	N.A.
	Earnings Per Share (Rs.)		1.88	2.63	13.96

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	N.A.	0.70	3.73
Net Profit Margin (PBT/Sales)	(%)	N.A.	1.06	4.07
Return on Total Assets (PBT/Total Assets}	(%)	N.A.	0.82	5.63
Return on Investment (ROI) (PBT/Networth)		N.A.	0.19	0.82
Debt Equity Ratio (Total Debt/Networth)		4.34	4.27	7.69
Current Ratio (Current Asset/Current Liability)		2.44	1.29	2.08

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

UNSECURED LOANS

Unsecured Loans	31.03.2012	31.03.2011
	(Rs. In Millions)
Term Loans
Loans from Barclays Bank (Business loan taken at 18.50% rate of Interest repayable in36 monthly installment, amounting to Rs. 0.073 Million per installment, ending on November 2014.)	1.245	0.000
Loans and Advances from Related parties
AM Beyond Luxury Watch Boutique Private Limited	0.080	0.000
Arun Malhotra	0.355	0.265
Alka Malhotra	0.000	0.334
Kamla Malhotra	0.493	0.328
Kavya Malhotra	2.038	0.000
Pegasus Beyond Luxury Trading Company Private Limited	0.000	0.618
Other Loans and Advances
Pegasus Bue Star Fund LLC	32.000	32.000
Advance from Customer	5.115	1.399
H.R. Enterprises	0.000	1.350
Kapani Constructions	0.000	0.250
Manoj	0.400	0.000
Manunn Thakur	0.000	1.700
Total	41.726	38.244

FIXED ASSETS:

Ø Land

Ø Buildings

Ø Plant and Machinery

Ø Furniture and Fixture

Ø Vehicles

Ø Office Equipment

Ø Computer

Ø Others

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 53.94
UK Pound	1	Rs. 82.77
Euro	1	Rs. 71.05

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	3
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	3
--PROFITABILIRY	1~10	3
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTERS
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		27

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.